MasterCraft Boat Holdings Inc reported a definitive agreement to acquire Marine Products Corporation in a transaction valued at approximately $232.2 million, prompting a sharp market reaction on announcement day. MasterCraft's stock rose 6.3% Thursday, while shares of Marine Products declined about 16% following the disclosure.
Under the terms agreed by the two firms, holders of Marine Products shares will receive $2.43 cash plus 0.232 shares of MasterCraft common stock for each Marine Products share they own. Based on MasterCraft's closing price on February 4, that consideration implies a value of $7.79 per Marine Products share.
The proposed combination would bring together a set of well-known U.S. recreational marine brands, including MasterCraft, Crest, Balise, Chaparral, and Robalo. Company management said the transaction creates a more diversified brand portfolio and combines complementary dealer networks with enhanced manufacturing capabilities.
On a pro forma basis, MasterCraft expects the combined business to generate approximately $560 million in net sales and about $64 million in adjusted EBITDA for the 12 months ending June 30, 2026. The acquisition price represents about 7.2 times Marine Products' expected EBITDA for that same 12-month period, after adjusting for the elimination of roughly $6 million in public company costs and corporate overhead.
Following closing, ownership of the combined company would be split with MasterCraft shareholders holding 66.5% and Marine Products shareholders owning the remaining 33.5%.
"Today marks an exciting and transformational step for MasterCraft and Marine Products as we continue shaping the future of the marine industry together," said Brad Nelson, chief executive officer of MasterCraft, who will lead the combined company.
Management outlined an expectation that the transaction will be accretive to adjusted earnings per share in fiscal 2027. The companies are targeting a closing in the second calendar quarter of 2026, with completion contingent on shareholder approvals and other customary closing conditions.
The proposed deal combines manufacturing scale, brand breadth, and dealer relationships in the U.S. recreational marine sector. Pro forma sales and EBITDA figures and the expected EPS accretion form the financial rationale presented by MasterCraft's management for the transaction.
Shareholder approval and the fulfillment of customary closing conditions remain open prerequisites to completing the transaction, and the market's mixed pricing response reflected differing investor views on the immediate valuation and strategic merits of the deal.
Pro forma financial highlights (for the 12 months ending June 30, 2026, as presented):
- Estimated net sales: approximately $560 million
- Estimated adjusted EBITDA: approximately $64 million
- Implied acquisition multiple: approximately 7.2x expected EBITDA (after ~$6 million of cost eliminations)